The market has its mind made up: July's tame inflation reading means no more interest rate hikes from the Federal Reserve.
The "patience" reference goes to whether policymakers will be satisfied that inflation will come back to normal without any further rate increases, or if additional tightening is necessary.
Following Thursday's release of the consumer price index , which showed a 12-month inflation rate of 3.2%, markets upped their bets that the Fed is staying put.
The chance of any additional rate increases also declined, dropping to 27.3% for November and 24.1% for December, as of about 1:30 p.m.
Thus, there was some caution from the CPI internals, and a stock market rally cooled Thursday afternoon as Wall Street digested the report.
Persons:
Quincy Krosby, Bill Adams, Rick Rieder, Tom Lee, Bradley Saunders
Organizations:
Federal, LPL, of Labor Statistics, Fed, Comerica Bank, Market Committee, Capital Economics
Locations:
BlackRock